• Marc Fagel, a respected retired securities lawyer, and Bill Morgan, a known digital asset enthusiast and lawyer, are debating whether cryptocurrencies should be treated as securities in the US.
  • Fagel argues for security status checks, while Morgan disagrees, citing legal definitions.
  • The debate raises questions about cryptocurrency regulation and compliance responsibility.

Crypto Vs SEC: Are ICOs Securities?

The Internet is buzzing as Marc Fagel, a respected retired securities lawyer, and Bill Morgan, a known digital asset enthusiast and lawyer go head-to-head in a debate around the legal status of cryptocurrencies.

Clash of Perspectives

Fagel suggested that digital assets should undergo a security status check if traded in the United States. In response Morgan asserted that unlike stocks, cryptocurrencies are not inherently recognized as securities under US or Australian law. He insisted that a digital coin can only be deemed a security if it’s considered an investment contract in the US or part of a managed investment scheme in Australia. An overseas Initial Coin Offering (ICO) couldn’t be deemed an investment contract under US law as it is outside the purview of the Securities Act. He also added that when such coins are traded on secondary markets they don’t automatically transform into securities.

Debate Heats Up

In response to this Fagel contested Morgan’s logic by equating foreign-issued stocks traded in the US to digital assets. He argued that if an asset meets the Howey Test it should be subject to US securities law when traded in the US. In his final response Morgan asked who would register these foreign-issued assets when first sold in the US and why they would be treated as securities if no decision had declared them to be an investment contract yet.

Questions Remain Unanswered

This debate once again brings up questions about cryptocurrency regulation and compliance responsibility which still remain unanswered for now though both sides made some valid points during their debate. It will interesting to see how this discussion develops further over time given its potential implications on future regulations of such cryptoassets across different jurisdictions worldwide.


The crypto community awaits with bated breath how this intense clash between two passionate individuals shapes cryptocurrency regulations around the world going forward!